Anthony Verdone - Addendum

FD-263 (Rev, 5-1-59)

v:

FEDERAL BUREAU OF INVESTIGATION j.

REPORTING OFFICE

OFFICE OF ORIGIN

ClffiC/iCO

DATE

7/i/i3

INVESTIGATIVE PERIOD

k/l+3 «*

TITLE OF CASE

REPORT MADE BY

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TYPED BY

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CHARACTER OF CASE

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APPROVED AGENT

IN CHARGE

DO NOT WRITE IN SPACES BELOW

COPIES MADE;

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DISSEMINATION RECORD OF ATTACHED REPORT

NOTATIONS

** **

cover? i?;.C3

AGENCY

REQUEST RECD. .

DATE FWD,

HOW FWD.

BY

U.S. GOVERNMENT PRINTING OFFICE 10 — 76324 “]

r

- *•

MX 165-18

mXm r» meting be bad 8/3/62 with Dr. AHTHOHY VEHDONE
at the Tonne Hotel , Milwaukee .

MILWAUKEE PIVISIOH
At Madison. t/lecongln :

Interview I I relati ve to the fact

that his VoJLicswapton Wisconsin license I I waa observed

on the parking lot of Vernon Hills Country club around 2/5/63.

At Milwaukee j Wisconsin:

1. Interview } _ _ _ I re receipt by

her of telephone calls from Chicago for Dr. VEHDONE which
might be significant to efforts by Chicago gamblers to
collect from VEHDONE,

2. Interv iew I.

I for the same purpose.

3 *

4.

Interview Dr. VI

] Milwaukee County District Attorney^

Contact

Office a rela tive to information he has received from
I pertaini ng to AD QIE MAIHACI and determine
vmewaer interview of | | would be warranted*

mm ismTivE

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Per

EOUSA

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COVER PAGE

HI 165-1 8

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Ob Jtmo a6. 1^63 1
I _ 1 rearpecriveiy, or tne 'xeiepiione Answering

service, 429 west FtLchlgan Avenue, Milwaukee, furnis h ed the
following information re Or* V

2*e use of that services

All calls to VERBOSE* s residence phone, Spring 4-2600, are
answered by the Telephone Answering Service, If the call
is for Mrs, VERDGKE it is referred to her private number,

OR 6-0584, If it is for Dr, VERD0KB TAS takes the message
and endeavors to reach Dr, VERDONE. The procedure card used

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COVER PAOE

MX 165-18

by TAS shows that ha can usually be reached either at St.
Michael's Hospital* his office, or at one of the following
other nunbers: Uptown 3-1892 (listed to HELEN NZCOOD, his
parasiout*) J HZ 4-6649$ or 362-2055 ( a long distance number).

The above individuals provided records of calls received
for Ur. VERDONE for the past month and there were no long
distance calls or local calls of apparent significance
noted other than one call on May 23 * 1963 from DOMINIC FRINZI
with a message for VERDONB to return his call within ten
minutes at Broadway 1-8202 (Fazio's on Fifth). This card
showed that the call was completed to HELEN NICOOD's msaber.

[

] said that he had observed that V

spent a

good deal of time at Sally's Steak House* 435 west Michigan.

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A check of the Clerk of Milwaukee Circuit Court records
failed to disclose any information relative to divorce
proceedings between VERDONK and his wife BLANCHE* but an
order for separate main term nee filed in i960 was found.

The follo wing inf o ption was obtained June 28* 1963 from

who desired that his

identity be kept confidential:

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COVER PACE

Or January 23, 1963 FOX

related the following 1

** Of •»

com pace

COVER PACE

FD-204 (Rev. 3-3-59)

*

UNITED STATES DEPARTMENT OF JUSTICE

FEDERAL BUREAU OF INVESTIGATION

' Copy to:

Report of:
Date:

X * USA, Milwaukee
X - USA, Chicago

SA JOSH A, HQLTZMAN
July 5, 19^3

Field Office File No.:

Ml 163-18

Title:

VERNON HILLS COUNTRY CLUB
GAMBLING CLUB

Office: MILWAUKEE

Bureau File No.:

Character:

mmmATB trai^pqrtation in aid of rackepeeri^i

Synopsis:

~ P -

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DETAILS a

This document contains neither recommendations nor conclusions of the FBI. It is the property of the FBI and is loaned to your agency; it and

its contents are not to be distributed outside your agency.

FD-302 (Rev. 1-25-60)

EDERAL BUREAU OF INVESTIGA

rw- April 30, 1S69

wtt& tim ’Imaintnart iai/or Vernon nil In enabling place at Ilia
Wlacooaln- Illinois State bine on Wigtoeay 41:

On 4/1S/S3 nf Milaanfeea, Vlacoaaln File # ** 183-13

b y sa jqaa a. miigms/ba Date dictated 4/ &4/ffi3

This document contains neither recommendations nor conclusions of the FBI. It is the property of the FBI and is loaned to
your agency; it and its contents are not to be distributed outside your agency.

2

FD-302 (Rev. 1-25-60)

EDERAL BUREAU OF INVESTIGaI^

Date

''jg

i

„ who raaidoa at

I and 1 b the I

]

. stated that be hod never

M with dloe arid bad never law© to Vernon Hills
iountry Club* and, In Au»t t use not familiar with the
qobo of ttilo place or the Baaeate&d, He eald tMt lie did
not know 28% JdMPfil VBRPO IjB MJl da ta tenon I 1

I I ^swelonsU^ and \ I ita he oee net at

LcTi he tieea frequent with cuotaoero

Itaepiry ms usd® of I l as to various other miumkm

Individuals who are believed to have ©wfelsd at Vernon HUlt
Country Club, and ho denied knowledge of auoh individuals
and mM that ha does not Worn anyone who gsia&les in Illinois
and that he hlasol? has never gmahlM there omepfc while in
attendance at the race tracks* likewise, he denied
of any ^aebUng spot® In fttlwaukee*

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On 6/&U/1-6 nt Blluaiuig&e, tviaeonaln File fl £€£ lL.j»lii

by

ba jmm

Date dictated

This document contains neither recommendations nor conclusions of the FBI. It is the property of the FBI
your agency; it and its contents are not to be distributed outside your agency.

3

and is loaned to

FD-302 (Rev. 1-25-60)

[FEDERAL BUREAU OF INVESTIGA’

%

Date

1 uhoat? pemunent reaidkmc# la

and ub© spends <ml.y I

I in Wlwatdrae. said that he la the eon of I

de to* lived in

I

boit

of iii» adult Ufe and wM m he had never baeri or the
Vernon iEUUU Country Club nor of his father g**3bling other
then at the race trade i ] tn reeent ym tra*

Ha mid that hie father used to gash la a little with dies
m uae a yeungM* oan«

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On 6/g7/b*3 nt HHfeSUteee, Isoonsln File # jjL

by &h jm® -H Date dictated T/t/%3

This document contains neither recommendations nor conclusions of the FBI. It is the property of the FBI and is loaned to
your agency; it and its contents are not to be distributed outside your agency.

HZ 165-18

k review flsf t he La) te Geneva Telephone Directory, pub li sh e d
by to Wisconsin Telephone Ccagiamr and dated Mi 1962
dlwlMid tot the tor* Club, 804 south lab* above Drive,

Lake Qeneva, Wisconsin nee to subscriber to telephone
motor CH 8*4821, to classified section of to sane diree-
toy s how e d to identical listing sod carried to asnouaecmsut
tot to to re Club was s cocktail lounge, which was open
year r ound.

On Maty 15, 1963, observation was node of to Shore Club which
was found to be located on Wisconsin Highway 120, 3$ silos
south of Lake Qenevs, Wisconsin.

Gtodor to pretext of being s prospective future family grot^
patron, to writ*? made Inquiry of to hostess at the tore
Club on tor 15# 1963. Ms hostess advised that reservations
could bo made by calling the house telephone CBmtmst 8-4821
end a phono beari n g this atom* was Observed at to reception
desk. It was observed that the lower floor of to establishment
contained a bar, a dining rocs, and a porch dining roes
overlooking to labs, The hostess also advised tot rooms
wore available for lodging on to second floor.

Ob s erv e tlop of the building itself disclosed that it was s
2$ story frame structure, apparently designed originally as
s residence.

On tor 15# 1963# Chief Deputy OEOROE SAifXER (Hi), Sheriff's
Office, Walworth County, Klkhorn, w io censi n, advised that
he is hsillar with the existence of the tome Club which
has been in exlsteaee as an apparently legitimate restaurant
and cocktail lounge for several years. St toted tot nothing
hod ever come to his attention tot would indicate tot eny

Illegal or raciest activities arc reported at the club.
SAWTOH to ted tot h» is p ersonally acquainted with [
Huh© is «sg>l©yed as I h

ed wi

chief 3A
of th e

as

toted Jn
club.

.ef

wae not actual

ar

Lth

the"

the

l advised on Ifcy 15, 1963 that to Shore

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MX 165-18

CM) has
five
club in

at abated that I

Forcin'

the part
ad the

*th t&m\ ii is»W i m

[stated that.

and in connection tilth this Interest,

club in the Sta

stated thetjL.

ft

of Illinois,

w .. _ fctaeto

restaurant ho&iwii catering In cwoaidcrnble volume to
parties and banquets far local civi c eluba at wall as to
the SBOtnU. public, at stated that I 1 resides on

available
pri or to

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the piwadaet and has ptrb^i a

far ro stal to tourists T He stated that w

taking «qp residence ln [ l was a resident of

fit advised tint tha location of the share dub was
la the to m of Li no, aisconeln, and the lurisdietien of
llceaging the slob would be vested In the tens of Mm*

I I stated that he has no knowledge of soar

goatling or rocket activities ever having been carried on
at the club.

\

Based on Information received fnw HSLKS HICOMD, 4940 Borth
24th Fiscs and paramour of Sr* AHSMOMf VEKDQ8E that the
deotor had a bachelor apartaent in the 4900 bleok of north
fnitesdUj contact wae had with SJB&t PSRRAOLT hxne 25* 1963,

Mr, RffihQf« who la a retired Mhauhw peHceemn# r e s i d es
at 4 915 north hetwt l i and said that he was not fuel liar with
Sr, VERSONS* s photograph or description of his ear bat that
he would endeavor to observe tenant# la the two epartaent
last to tt« north of hist In the same block end
would advise should be observe Sr, VERBOSE. m said that
the asArtnaat immediately to the north of hla at
jaw owned by a l ~l af

□ Sdi ladar an contact dime 25# 1963

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mameuni ttf

a tenant a 1

and name wer e not

_ , _ said that Sr.

familiar to har as

apttrt^M^dc

*sl

Iwaa determined to be

of sr, rtmom
4 at 49

as

933 Berth

ir*nrjr,TTni'

tva

Teutonia

1 identified
mi, ranted

. who „„

on done 1, 1963 * Me paid

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KX 165-18

tt* fir* 1 s tenth** rant in cash. I said that

yWHMIff was real flint nifln< > and w >t aa j [ abtnlnnrt

no MMtia as to why 753RDGHE m* living tbcro mi. in be
!*•*. had not recognised the Individual as Or, VEODOHs b7

until feeing contacted by tha agent, Be amid ha premies
tint VSfflQIiS most too having trouble at luma.

r

FD-302 (Rev. 1-25-60)

'FEDERAL BUREAU OF INVESTIGA'

♦

Date

\ conducting mo jam me for tm

W¥®l«aw, furnished the following infonastloo:

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On t-/2h/G:i nt flllsioulsee* taconain File # USk

3* JQI8I 4*

This document contains neither recommendations nor conclusions of the FBI. It is the property of the FBI and is loaned to
your agency; it and its contents are not to be distributed outside your agency.

Date dictated

f-t.

O

9

FD-302 (Rev. 1-25-60)

FEDERAL BUREAU OF INVESTIG *

Date

July

mm* Atmmm j. -mmm (mm m*mm msm) furnished
toe fvm Mitns tnfowetlom

to# awprittd J3 r. VSSdfiQtfil while lie m& in fledlcs! ^etiool
in 1939 end lived with him etos <jj|y until about 1$$?
toon he started running around with mym Hm too at
that tim km employed in VHRPQHK*a affine* Far approxi-
mately two ymzm cmmmim io 19b? V&nwJMB lived assay
from hia resldanoe at 1731 ata -/lata where mm* wmxm
wUXX 14 vm mm then he returned for apprtndUafctoly a year
dia^ni I960 and ighl tut ajaln left at that tine and had
net lived at ism ulnae. Hr®. OT0<K present ly he® an
order for separate imtotonsnc# but because of Or, VCHDQMK’o
financial condition aa a result ofhta ipsabltog she la not
receiving payment*.

&m ©aid that during their y<s»r» of carriage Or. VUIOGdis

had aeounulatod a cooatoerabto fortune consisting of several
hundred thousand dollars to cash mid properties but that at
toe present ttos he la absolutely broke and heavily indebted,
toe attributes hie lose of money to hie association with
KEEdh IIICOGB and to petUisg which IN« 'fEUDOHE believes
SICOOD i» responsible for.

ttm* VKKD9N£ said that she haa neves’ gooa to a ip^hling
place with Or. VEhOO^s and does net tense where auto {dime
*** loestod. isD toe was stood about toe ism of toe
Hwstead. toman mis Country Club, mm Bonfire ito»tois*nt
she said that toe recalled having seen ishhooks if toe
Ifeematoad mid the Bonfire mrnUmmt as well aa saetotoetos
fW» a*» place In Antioch, iHtoato in fir. vmmm** twiasaailrm
tot tome sne would ato hto about these places he would toll
her tost it wee man© at her business, aha said that tot was
not facslltor with toe none vemsti Mils Country Club,

dto. V3KMNK stated tost there has never been any mail
received or telephone calls received to her knowledge which
night pertain to efforts by individual* to Illinois and
elsewhere to collect gambling debts from fir.

toe said tost she was well acquainted wito ApaiE mxu Cl
and explained tost she and her husband know toe whole JtftNXACX

Q n 6 /^ 7/ *-•'3 nt idUttfOukse# ulso-onsin File $ Ml Ib-ylfe

bv §m mm imamm k MSMmm ?. m Date dictated ?/v& 3

y dEbOD/faap

This document contains neither recommendations nor conclusions of the FBI. It is the property of the FBI and is loaned to
your agency; it and its contents are not to be distributed outside your agency.

family aM had known thorn fortmny years dating ftw the
time that hr, VHRBOME was in aadlcal school and used to eat
in Ftp MAJHaCI’s Restaurant located in the vicinity of the
medical school* 'Thereafter, VEB&om became the family physi-
cian for the J§UOUCX*s and has treated all of them. In addl-
tion the maHIaCI’s, because they art aa well acquainted in
Italian circles (hr. YiaSDOSE is not from miwaokee originally)
have referred many other Italians to fir, V1BS0SE as patients,
lira. VERBOSE baa in the past entertained the MMtMZt'm in her
home at Christmas parties and the like# and although she dams
net know of Sr, VSKDOHE over being in business with aoqik
V tiMIACI aha said that she herself Invested approximately
$2,000 in Club Midnight operated by the MaNIacI»s. Ihis
occurred about 15 ysars ago and she loaned the money to
ABOIE*s wife. BAKf, la the form of paying current bills and
expanses of the Club Midnight, 2he money was all paid back
and so far as aha knows neither she nor £r. vmtx>m hem
advanced any other money to the MARIACI's or been in business
with them in any way,

Mrs, VffiSD&RB said that she does not know where Dr. ¥£3tPQt££
ia residing at the present time but that ha can ha located
through EELRK RtCOOD at any time* she said that all of his
assets have been placed in the hands of the receiver and
aha doubts that he is gambling at present because aha does
not think that ho can got hie hand s an money, All income

from his practice goes directly to I I

sod all bills are paid from the account controlled by
Ibe attorneys for VERB** are ho&ah® and SGhJOU.

Mrs. ViStBCKIK said that over the years Dr. V8BXK*«s gross
incase was in the neighborhood of $100,000 a year but that
his operating expenses were approximately $50,000 per year,
aha said that by 1957 their house was bought and paid for
and he had two large automobile* bought and paid for, they
owned four or five lota and several business properties.

All oft his is now gene and he is hesvHy Indebted including
$15,000 that her parents had loaned him.

FD-302 (Rev. 1-25-60)

^FEDERAL BUREAU OF INVESTIGA^^

July 19^3

Date

tm&m tffis&m, 4940 north atoth Place, ^latufiet! furnished
the following Infwiaitlom

romcply worked In the offiM of Ur* VflliKin! and she
associated with hie and ©her continues this aeeoeiatiar) to
the present fcJiws* aha is a widow and Dr* V1RIK3£JE has been
vary good to bar*

ah® daisied that aha tea ever goo* to any guabllng establish-
Manta with 9 r. vskdonb or even that ah* Knows that he had
gone to gambling eatabliaisacnta * 3km said that the only
gaafcling that he does to her knowledge la at the race
track and that aba hee often aoeanpeniad hist to neoee in
Ullnole tut that they have never gene to a dice gams or
Vernon mile Country Club In the laat three yaara* ahe
said that ©he had stopped there with hla about three years
age to eat* 3km alao denied over having bean at the Heweetead
or any other gambling plane with or without Sr* WMGS&R,
aha olalaad not to knew the eaetetst of hia saabling or anything
about hia financial situation* 3km aald aha thought he waa
In treble three or four souths ago whan hla oar waa reapae seised
while it mm in her' pmmmXm^

aa Id these have never been any phone oalla for Sr*

VK80CMBI received at her place which aha oould in any way
connect with efforts by ga eblere to collect ga&fcling losses*
Likewise there have never been any eelle free Illlnoie that
aha knows about* lisa aald that Hr* V8RD0MS often uses

or longdistance calls but that she has
no record of long distance <»Us because he always charges
theca to hia credit card*

mas SfCQCh said that !te*» VHhhCSis: hao a bachelor apartaant
located in a new apsrtaont building located In the 4900
blade of Hearth IWuteni* and that he drives a new blue eedan
which lodes like (but l*»«t) a Lincoln* mas IHCOMO aald

that she does not know any close e a s e
but that he used to be frien dl y with

run# | | @uj

and also with H wuixacx af tfas m
frequently to eat* £t»e said that,
to own a part of the Club tttdnSght*

its fact,

here

be

hie

sttlasukoe, tmormtn

sm mm iwLm&H & uMmmm ?. m

Date dictated

This document contains neither recommendations nor conclusions of the FBI. It is the property of the FBI and is loaned to
your agency; it and its contents are not to be distributed outside your agency.

MI 165-18

1

They go** fragment Sally* a afcaafr Ileus* im WMt Michigan
where | |is employed.

mss m&tm mM that Dr. V1HD0ISE has saw been threatened
by ait?«w nor has AUOIE Iulkxacx ever tried t© collect say
jaoney freei hiss that she knov;a about*

HI 165-18

At St* Michael 1 * Parking Lot on Juno 26 , 1963 a 1963 blue
four-door Gldsmoblle bearing i&sconain license B24*
was observed* It was determined that this license

tered to Selig Executive Lease Company, T 1
Avenue, and contact of this place with
determined that this car is being driven ©

‘ y, we ' ‘ _ ■ ■

Pro duce
01 PH!0

rental is paid by check

Sir

4QQ_
3

llU

L8

west

ther by

or by ’SOUK LA SOSA of Prize Steak
, 2478 north rile bards* It was described by
Holiday sedan rented by LA ROSA and the

of the Prize steak Produce Company*

FD-302 (Rev. 1-25-60)

FEDERAL BUREAU OF INVESTIG *

Date

July •}. 1963

I ldeotifiW

or j aisuuo and *qd a» mmkt as potato

ahs. i i to —ployed as a»[

hi». She —id that these tm 1 ndividuelc
ptUents* mer «1— ' seen to he friends* of
wmsom or *t least associates in so— other setter then

reciter doct o r rohtioii8hlp« she that

shout a year ago the y used to coco in oe— aiotwtlly arid melt
Br» v»m* until * ~ J ‘

to eee Br» VBftfKMR until he use ale&r, thee they would visit
with him for a short U m privately sod leave. At shout this
tlaw Sr* vm&Gm was receiving ra— a r o u a telephone oslls
from s j— rty believed to he MM aw lost also
I &mm eaiiA ra g the west pert were vsoaiesd
by | I who fosnarl

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fcarL

JLL

worked m Sr. ysaflagu office and toy

£y

been for a rasaher of years an mtplayee of

] idio xo and haa

did not receive any of these oslls herself but
she did overbear the cells coming lo end the girls asking
Or* VBRDC8® if they could put the cell through to his or
so oc ca s i on s when he ms not there they would ask if there
wee s sassage. Diets idem they would endeavor to put Use
sll through to dr, VWMNK or give his s nos— go to return
the call he would fly into a rage and repeat to then 'Mist he
had told th «a that he did not waist these cells and so far as
I I knees he did not return the calls, She eald that

aha was unaware of the nature of the eaUa ssespt for the
fact that they did enrage Dr.

be

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3fi£

paid that the of fice is namin g such smoother
before new that f ha booki— pins setup is changed and

It ftU nMifiii ini

;'1I» aaid WT^ms^m ism changed for the better te

decree under this mm aetup and that she la unaware as
te hew he spends hie pears that or whether or net he is
gambling or gains te aUa c U , aha aaid that, in fact, aha
never had any first hand Information as t© Ms Mabilna
beyond that received frm hie wife BIVUKDE.

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On 7 /I/fcl q t ntlwaakse, wiaconain File # id HiHUS

by so joes* A, mm** & cahixle m» EEt^va* ^ dictated 7/V%3

This document contains neither recommendations nor conclusions of the FBI. It is the property of the FBI and is loaned to
your agency; it and its contents are not to be distributed outside your agency.

U

id 165-16
2

]*£id that none of the patient# of Dr. F

Jra*r4W*

have over nade any Inquiry of her or alluded to tbs foot
that their cheeks to Dr. vssDQMt had been cabbed In Illinois

and Sim said that aha is not aware of the existence of any
decks issued by Dr. VERSON hlsself in Illinois sad that
all of his personal checks which bo foraerly kept around
the office have now boon taken elsewhere and are m longer
available in the office.

FD-263 5-1-59)

A w w

FEDERAL BUREAU OF INVESTIGATION r

V

reporting office

MILWAUKEE

OFFICE OF ORIGIN

CHICAGO

PATE

8/23/63

INVESTIGATIVE PERIOD

7/5 - 8/9/63

TITLE OF CASE

REPORT MADE BY

SA JOHN A

* HOLTZMAN

TYPED BY

Imp

VERNON HILLS COUNTRY CLUB

GAMBLING CLUB

CHARACTER OF CASE

ITAR

REFERENCES

Report of SA JOHN A. HOLTZMAN 7/5/63 at Milwaukee.
Milwaukee a irtel to the Bureau 8/7/63.

- P -

LEADS

CHICAGO DIVISION

1 .

At Chicago , Illinois ;

Ch^Qk to ll rep . nr fin f or 1962 from the telephone off

]f telephone number JU §-$8l4, p artic ularly

L , - - . „■ V M W H/lv

gau j to^yERDONE. Also as to phone calls from I I

Arlington Heights, telephone CL 3-5591.

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APPROVED <\j j 1/) SPECIAL AGENT

— ItbfJrJ IN CHARGE

Dp NOT WRITE IN SPACES BELOW

COPIES MADE: /] Jr

3 - Bureau (165-414)

1 - USA, Milwaukee (Encs. 2)

3 - Chicago (166-77)

/ — ) (1 - USA, Chicago)

/ 3/- Milwaukee (2 - 165-18)

f]X2 168-43)

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Agenqy

Dissemination Record of Attached Report

i

MI 168-43

2. Identify subscriber to Libertyville phone GE 8-7632 and
conduct similar investigation as to this phone number.

3. Furnish available information re endorsers of checks
set out in re airtel and upon receipt of copies of the
checks from the Laboratory conduct interview? of these
individuals and pheck their toll records for -significant
calls since 9/13/61.

4.

Interview
VERDONE ai
and re hi;

to

(61

nd others in Milwaukee at Christmastime, 15

s visit to Dr* VERDONE to I 1

MILWAUKEE DIVISION

At Milwaukee, Wisconsin;

1 . . Upon receipt of photographs , of Chipagp gamblers and juice
men display to VERDONE office employees with a view to
pinpointing times that they were in Milwaukee to collect
from VERDONE.

2. , Interview f

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3 .

Interview

1

and any others who can

and are willing to plape Dr. VERDONE in gambling establish-

- B -

COVER PAGE

meats in Illinois in 1 &QU and in Eenosha, Wisconsin prior to
the time that was closed in January, X9J3*

JL.

I

_ , Franklin 2-0719,

Iqmn of i

| (&TU) , previous owner of

I through hor parents,
former employee of VEKB0!3i'8|
1 for VEaPOKEs and

FD-204 (Eev. 3-3-59)

UNITED STATES DEPARTMENT OF JUSTICE
FEDERAL BUREAU OF INVESTIGATION

Copy to: 1 USA, Milwaukee

1 USA, Chicago

Report of: SA JOHN A* HOLTZMAN Office: Milwaukee

Date: AugUSt 22 , 1963

Field Office File No.: HI 163-13 Bureau File No.: 163-414

Title: VERNON HILLS COUNTRY CLUB

GAMBLING CLUB

Character: INTERSTATE TRANSPORTATION IN AID or RACKETEERING

Synopsis:

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ENCLQS0RK8: To BRA Milwaukee: 1) Copies of I I be

I I off ice records re return of VBWWS‘» b7c

financial records;

2) Copies of Saak of

Coanarce records pertaining to Cashiers cheeks
purchased bp YSRDONK.

This document contains neither recommendations nor conclusions of the FBI. It is the property of the FBI and is loaned to your agency; it and

its contents are not to be distributed outside your agency.

m i€s*4$

I>£X%XXS3

At fiil gaufceg, Wlgcops&B.:

A smbpocaa ms isauod fov I

be^oro tjis Fodor&X Cracd Jury on |

issas served oa »July IS* 3L&S3 — hv the ffCi

Ageat C1K&I2S A* A03PX& a© I

oa t&o »id~a£t 02 ?oooa of Jfaly 15* 1353,

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MI 165-18 b6

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MI I65-I8

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b6^EousA|j e requested the following additional investigation at Milwaukee:

AT CHICAGO, ILLINOIS

The following investigation was conducted by SA

If^kregard to telephone calls from Milwaukee number OOncord 4-2800,
number, which were made in September and October, 1962,
the following subscribers were identified by use of a public source
of information provided by the Illinois Bell Telephone Company for
Chicago City patrons who have not requested that this information
be withheld:

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11

MI 165^18

IR 8-7524 and 478-7524
are Identical and are
listed to Fitzsimmons
Surgical Supply, 3926
North Christiana, Chicago

431-6111 is listed to
Administrative Offices,

Standard Oil Division of
American Oil, 910 S.

Michigan, Chicago.

a SUDBna ry of activities of individuals as requested

by Milwaukee:

KR0SE is a high, ranking member of Chicago crime syndicate who meets
almost daily in Chicago's Loop with other top ranking syndicate
members, KRUSE is known largely for his operation of thesyndi-
°ate s big gambling games > whether it be in Cook County or some
adjoining county. His management of gambling operations is extended
from the notorious Owl Club in Calumet City to the J & J Picnic

2r?U!L:!' n County, whioh have both since been raided and closed.
Reoently ho has boon responsible for the activity of the larger
type gambling establishments in Lake County, Illinois, namely
Vernon Hills, The Homestead and the short-lived operation at
Rondout .

KRUSE does not appear at these locations personally and last did
so at the Viaduct Lounge and other operations in Cicero, where

2JLH5 SSE e !£2 d b 5L Attorney's Polioe in a raid whioh

5F us 5 now is engaged in setting up a gambling
establishment in the Dominican Republio and has flown there
frequently in past weeks. He is said to ’’almost ooramute" between
Chicago and Miami since he has an expensive residence in Lake
Worth, Florida, in faoti KRUSE, his wife and daughter flew to
Miami on July 23, 1963 and from there continued on to the Dominican

n0PUt)llO •

I who lives atl

two^children has reportedly attained
of his considerable activit ies a s al

was a I

wife and
-heoause

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MI 165-18

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In Janu ary, i960, when the J «T Pi ante (rpnve hep-an n par>fl-Mwgr

| was also seen there in i [ it hag

teen relatively reported that on a good night

When the Vernon Hills operation became active. T I was again

seen in his usyal role at this establishment, however, by about
June of 1962 1 r - • - - - -

scene .

seemed to have disappeared from the gambling

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Information has been received by the Chicago Office that
was being investigated by the Internal Revenue Service because of
reports that his income exceeded his returns and apparently it was
felt by the syndicate that he was too hot to remain as a money
lender.

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]now is operating a liquor store in Chicago and a recent

attempt interview him by bureau agents was of little value

because

| was completely uncooperative.

r

he and his wife.
In lasaE

is a reside nt of
reportedly

where

cates that [

was known to be

with one f

dates back to 1943.
handbook in

a handbook operator in

T _l Other information rec eived Indl,

J association with a book operation in

He has been re puted to operate the largest

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man in[

h£

s in recent years been allied with
who is con sidered to be a 1 n v pt»

of

^ .have operated

and these operations apparently

gambling operations in
remain on a comparatively small scale until they Join’ forces* with
some Chicago syndi cate representativ es, namely LESLIE KRUSE and
his representative

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MI 165-18

on February. 9, 1963

Iwas arrested in the raid at

at which time he advised SAT
the game and it was noted that $1,000 was found on his person at
that time* I I was aga in observ ed at an attempt to raid the

^that he was the operator of

gambling establishment at

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on June 28, 1963 after he had

been observed there as an operator for several weeks.

is a resi dent of Chicago and

|has been known to be associated with

syndicate members for many years and partic ularly with the ENGLISH be

brothers from whom ha reportedly purchased [

J recently has been closely associated with

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LESLIE KRUSE and frequently has been seen in KRUSE 8 s presence
and also with

Two years ago

was interviewed regarding his association

wit h MURRAY HU MPHREYS, notorious syndicate leader and at this
time | | stated "he has al ways been only a stone 8 s throw

away rrom gambling". I I is usually always present at the

scene Of gambling onaratinns and alsn wan ar»r»agf;afi on February 9,

1963 at ,

associated with thd

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. was recently

J a scavenger business

which has also received particular public ity becaus e of its alleged
force and muscle in obtaining contracts. I I is married to

With regard to the dates of operation for the gambling establish-
ments the following "rough estimates" are being furnished:

A. The Old Homestead has been open for approximately 2 § years.

B. Chicago has had information that there was an alternate gambling
spot located somewhere to the immediate south of the Old. Homestead,
but at this time there is no knowledge of a farm house "with big
white pillars" being used for gambling.

C. The Vernon Hills operation is believed to have opened about
January, 1962, and was closed at the end of January, 1962. In April
of 1962 it was going strong again and in July of 1962 it was appar-
ently at its peak, operating seven days a week. The operation
apparently continued until it was raided on February 9 , 1963 and
has not operated since. During the period of time that the Vernon
Hills operation was in business it had been reported on occasion
that the gambling game was moved to the Old Homestead and also to

a location on Route 176 in Rondout, Illinois. The reported purpose
in moving in this manner is to avoid detection and raids.

14

MI 165-18

DOMINIC ABATA was interviewed at his DUOC Office recently, and he
furnished the following information concerning his association with
Dr. ANTHONY J. VERDONE:

He said that he met VERDONE two or three years ago in Milwaukee and
has only seen him a few times since then. He saw him on August 8,
1962, at a hotel where ABATA was staying while in Milwaukee for a
taxicab union election.

He said that he was aware that VERDONE was "on juice” and when
asked for an explanation of this he said ,s You know, six for five."
He also said that he is in debt to a considerable extent and when
ABATA was asked whether he owed the debt to hoodlums in Chicago or
in Milwaukee ABATA answered, "What’s the difference. It is all
the same."

He said VERDONE has been a very heavy gambler with regard to horses,
craps and other forms of common gambling. He stated that VERDONE
is a very nice person, has an excellent business and considers him
one of the wealthiest doctors in the State of Wisconsin.

He knew that VERDONE was born in Brooklyn, New York, and attended
Marquette University, after which he was married to a Wisconsin
girl and remained to practice in Milwaukee.

He also stated that the doctor knows most of the big syndicate
men in Chicago and Milwaukee and has the Milwaukee hoodlums for
patients. VERDONE told ABATA shortly after their first meeting
that he was frightened beoause of hoodlums whom he had met. He
was not able to furnish exact reasons for this fear, however. On
the occasion of their next meeting, mentioned above, VERDONE told
him that he was in serious trouble with the crime syndicate.

ABATA exhibited a letter dated August 20, 1062, which was sent to
him from VERDONE and asking for any possible help on a hospital
which apparently VERDONE was desirous of purchasing. ABATA said
that VERDONE had previously asked him in connection with this
hospital whether or not ABATA was acquainted with Illinois Senator
PAUL DOUGLAS. ABATA assumed that VERDONE wanted ABATA to attempt
to "pull some political strings," to assist him in getting this
hospital. ABATA stated that this hospital was located in
Milwaukee and all he knows about it is that the previous owner has
been in jail,

ABATA said that he did not meet with VERDONE on any frequent basis
and is not in a position to furnish any information concerning his
activities or gambling debts other than those above.

14a

FD-302 (Rov. 1-25-60)

FEDERAL BUREAU OF INVESTIGATION

Data July l8, I 963

e following information

infor>I Pa^ lon she furnish be kept in strictest
of confidence beo ansp of i

V 7 T-5 rsm 1 arid she would be very reluctant to testify

File # MI 165-18

by SA JOHN^A. HOLTZMAN/lmp

.Date dictated 7/15/63

your oiS« n^ tC [f n8 “® lth ® r recommendations nor conclusions of the FBI. It is the property of the FBI and Is loaned to

your agency; it and Its contents are not to be distributed outside your agency. w loaned to

15

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that she desired the above information be
he strictest of confidence and she would be
to testify relative 1 to it because of the.

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FEDERAL BUREAU OF INVESTIGATION

FD-302 (Rev. 1-2S-80)

rw. July 18 , 1963

• was int erviewed at her place of employment. !

. I l and furnished the following information s

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She said that I

all of them at the Home Savings Bank and all used to pay bills

since his bank account had been olnflftrt at fthg flanltnl Marina

Bank. She said |

She said that Dr. VERDONE averaged two. or three long distance
telephone calls incoming from Illinois principally but she was
not aware of the nature of the calls or 'the source of them.

She also noted incidentally that he had very large toll call
charges, and she recalls that a considerable number of toll
calls were between the doctor and Louisville, Kentucky numbers.

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She was questioned as to Dr. VERDONE' s visitors and various
names furnished by other individuals as having what appeared
to be gambling dealings with Dr. VERDONE, and she said that
she was not familiar with any of these names either by telephone
calls, money orders, or persona l visits, with the exception of
AUGIE MANIACI, JOHN AIELLO, and | | She said her only b6

knowledge of these individuals was that they were patients of b7 '

Dr. VERDONE and that in addition AUGXE MANIACI was known to
her -as a friend of the doctor's. She said she was totally
unaware of any gambling activities of the dootor although
she had heard from other girls in spite of their efforts to
keep it from her in the office about the fact, that the dootor
was a heavy gambler. She said that he has never to her
knowledge exhibited fright and the only individual she knows
he tried to avoid while she was there were process servers.

t

On 7A7/63 Milwaukee. Wisconsin fiu * 1 Ml 165-18

by SA JOHH A. HOLTZMAN/lmp Da „ d | etat . d 7/18/63

ThU document contain* neither recommendation* nor conclusions of the FBI* It is the property of the FBI and is loaned to
your agency; it qnd its contents are not to be distributed outside your agency*

on

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MI 165-18
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The originals of the above items, copies of which are attached

to the report for the United States Attorn ey^ use, a re available b6

upon issuance of a subpoena duces tecum to| b7c

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FD-302 (Rev. 1-25-60)

FEDERAL BUREAU OF INVESTIGATION

rw. August 15, 1963

onTiii*)^? following information would be available

on issuance of a subpoena duces becum;

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Milwaukee, Wisconsin

* -gj JOHM A. HQLTZMAN/lmp 8/Q/6^

sssfri sswr jsss " - **• - *• ™ — <•. i k— ■ <•

24

FD-302 (Rev. 1-25-60)

FEDERAL BUREAU OF INVESTIGATION

masiom

rw» August 1963
furnished the following iBf Or-

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On 8 / 9/63 Milwaukee,- Wisconsin File # MI 165-18

by _ SA JOHN A o , HOLTZMM/lmp Date dictated 8/13/63

This document contains neither recommendations nor conclusions of the FBI. It is the property of the FBI and is loaned to
your agency; it and its contents are not to be distributed outside your agency.

OS

• •

MI 165-18

MI T-2 said that so far as he knew personally ! I had not

gambled at Kenosha since November of 1962 but VERDONE definitely b6

did gamble there at that time and the following individuals from b7c

Milwaukee would have knowledge of this as they also were there;

informant also stated that each of the following have been at
Vernon Hills Country Club at the same time that VERDONE was there;

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This informant advised on August 2. 1963 t hat a new gambling club
1 lwas ooeninc at the

'"Club 42“ on Highway 42, Zion, Illinois. According to the
inf ormant, this is open every night of the week and I I

and I I have been going there from Milwaukee,,

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FD-302 (F)ev. 1-25-60)

FEDERAL BUREAU OF INVESTIG^flON

t

Date August 14, 1963

Dr. CLARENCE M. STEINER, 2105 Himount Blvd., medical offices at
9221 West Center Street, furnished the following information
after he was advised that he did not need to furnish any informa-
tion and that any information he did furnish could possibly be
used against him in a court of laws

He was born December 21, 1905 at Richfield, Wisconsin and attended
Marquette University and Marquette University Medical School.

He was asked relative to his gambling activities in Illinois or
Kenosha and he acknowledged that he had gambled about 5~7 times
approximately 3 years ago and definitely not later than i960.

He said that he had been both at the Homestead and Vernon Hills
Country Club and when it was pointed out to him that the Vernon
Hills Country Club did not open until long after i960 he admitted
that he must have gambled later then as he had very definitely
gambled at both places. He said that he did not go down to
Illinois during 1961 as he was ill a portion of the time but that
he had been down there 3 or 4 times in 1962.

He said that he had never cashed any checks there, either his own
or checks of patients, to his best recollection tout that he would
examine his cancelled cheeks; in the event he did find any that
were issued for gambling purposes he would advise interviewing
agent.' (Hg telephoniea lly advised on August 9# 1963 that he had
been unable to locate any checks and unable to recall any
additional details relative to his gambling activities).

He emphatically stated that he never gambled at Kenosha, Wiscon-
sin and that he had never done any gambling in Milwaukee either
with dice or with bookies.

He said that he had never been contacted toy individuals from the
gambling establishments in Illinois, invited to come down there,
and that he initially went to the Homestead and was introduced
and admitted through one JACK GOODMAN, now deceased. STEINER
said he went there several times with GOODMAN and thereafter by
himself. He said he had never received any telephone calls
from these individuals, never owed them any money and when he
was exhibited photos of various of the persons known to toe engaged
in the operation of the gambling eluto and patrons from Milwaukee he
stated .he did not recall these individuals by name or face.

On 8/5/63 Milwaukee, Wisconsin File # MI 165-18

by SA JOHN A. HOLTZMAN/lmp Date djctated 8/9/63

This document contains neither recommendations nor conclusions of the FBI. It is the property of the FBI and is loaned to
your agency; it and its contents are not to be distributed outside your agency.

27

MI 165-18
2

He said that he was well acquainted with Dr. VERDONE on a pro-

vlSSnSS 31 basis and that he had gcme to the race track with Dr,
vekdone on one occasion .but they had some disagreement and he

WRnnM? er JUJboIs race tracks or gambling games with

_ fact, that he did not recall ever having
seen Dr. VERDONE at the Homestead or Vernon Hills Country Club
when he was there.

MI 165-18

■v

<*■

had been observed during the

A ear bearing Wisconsin license
week of February 6, 1963, in the parking lot of the Vernon Hills
Country Club,

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This car was determined to be reg istered to

of

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Investigation at Madison and Milwaukee reflected that

On August 20, 1963, he was interviewed by SA ALEXANDER P„ LE GRAND
at the Milwaukee County Sheriff's Office where he was in custody
on the basis of t he above warrant. He furnished as a current
temporary address I I telephone HUmboldt 1-826 0.

and said that he was attempting to get back into I I

on a active duty status.

He admitted that he had gambled at Vernon Hil ls and
gambling places in Illinois while attached to I

he had not gambled there since Christmas, 1962.

related

but said that

He was exhibited a photograph of Dr. VERDONE and other known
Milwaukeeans who are believed to have gambled at Vernon Hills
and was unable to identify any of them as persons known to him
to gamble there.

He sa id that the operation in Illinois was run by an individual
named | | (LNU) .

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